Chris’ note: It’s called the “S-Force Method.” And judging from the response from readers, it was a huge success.
I’ve already spilled a lot of ink on why you have to check out Jeff’s new strategy. But the short version is that Jeff is one of the most consistent moneymakers in our industry.
More important, the gains Jeff racked up over 18 months of testing this system with his own money will blow you away. (More on those below.)
If you attended Jeff’s coaching session last night, you’ll know what I’m talking about. But if you missed it, don’t worry. As a Daily Cut reader, you can catch the full replay here.
Meantime, for today’s dispatch, I’m handing the reins over to Jeff. Below, he explains in his own words how he developed his strategy. He also shows why it’s an important weapon in your arsenal if you’re looking to make market-beating returns…
Just about two years ago, I had an epiphany…
I glanced up at one of the TVs in my office and watched the ticker tape at the bottom of the screen.
There was one stock that kept crossing the tape. It was a $3 stock, but it was up over $2 on the day.
In other words, this tiny stock was trading below $1 a share the previous day. And it was now up more than 200%.
“That’s interesting,” I thought.
The next day, I noticed another low-priced stock that was trading sharply higher. It was trading for about $2 a share the day before… and was now crossing the tape above $4.
The longer I watched the ticker, the more I noticed how several low-priced stocks were showing supersized gains.
And I started thinking, “These tiny stocks are showing option-like returns.”
Now, I’ve spent my entire career trading options contracts. These contracts offer the right to buy or sell a security by a specific date.
You can think of these as “side bets” on stocks. Options rapidly gain value as the price of the underlying stock rises or falls.
I love trading options. I’m pretty good at it, too. And for traders who are looking to reduce risk and increase their potential reward, options offer the best way to do that.
After all, when you’re looking at stocks that trade for $50, $80, $100 a share or more, options allow you to capture all the upside of a stock’s move.
Each option contract controls 100 shares. So you can get more upside potential using options than you’d normally have buying an expensive stock outright.
Options also significantly reduce your downside risk…
The problem, though, is options expire. If the stock doesn’t move in your direction by the expiration date, you’re going to suffer a loss on the option.
But stocks don’t expire. So, with these low-priced stocks, we get the potential for option-sized returns without the risk of an expiration date.
That was my epiphany. And I got to work right away trying to figure out if there was something similar among all these tiny stocks that were popping like popcorn.
There is. And I created a trading system to take advantage of it.
For the past 18 months, I’ve been trading these low-priced stocks with my own money.
And the gains have been insane… like 100% in two months, 95% in three months, 56% in nine days, 55% in two days, 133% in less than three months… and so many more.
Like I said… These are option-like gains, from low-priced stocks.
And based on what I’ve seen over the past 18 months, I’m confident that over the next year I can find at least 12 opportunities that produce gains of 100% or more.
Last night, I revealed the details of my new low-priced-stock trading system for the very first time. And judging by the comments folks sent in, your fellow readers were more than eager to start using it.
If you weren’t able to attend, don’t worry. It’s not too late to find out how to start using my new “S-Force Method.”
Click here now to see what it’s all about.
Best regards and good trading,
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Jeff Clark
Editor, The Breakout Alert
P.S. My first three official trades hit inboxes this morning. But if you’re worried you missed out, don’t be…
In my testing phase with the system, I found that these trades take a couple of months before they really get going. So there’s still time to establish a position.
I also released a report on my No. 1 favorite stock to trade over and over again. If you’re a regular reader of my work, I’m sure it will surprise you…